Govt. to slash car registration fee in the Budget 2017-18

Ishaq Dar, Finance Minister of Pakistan presented the budget (2017-18) draft today. While giving out the budget speech, finance minister highlighted the importance of manufacturing industry in a country’s economy.

“Industry is the backbone of any country’s economy,” said, Ishaq Dar.

Owing to Pakistan’s booming auto-industry and increase in the demand for automobiles, the government has decided to provide relief on the withholding tax on new car registrations for income tax filers.

Most notably, this relief will be offered across three vehicle categories:

The registration fee for an 800 cc automobile has been dropped to Rs 7,500 from RS 10,000.

For a 1000 cc vehicle, the registration fee has been cut to Rs 15,000 from Rs 20,000.

For vehicles having a capacity of 1300 cc, Ishaq Dar announced a price decrease to Rs 25,000 from Rs 30,000.

Notable Replies

Current concessionary rate of customs duty and taxes, which is 50% of the total applicable duty and taxes, will continue on the import of Hybrid Electric Vehicles (HEVs) up to 1800 CC and 25% concession on total duty and taxes will be available for vehicles with engine capacity between 1801 and 2500 CC.Auto Development Policy 2016-17 provides for incentivizing fully electric vehicles to promote fuel conservation and arrest environmental degradation. A package for relief in duty on these vehicles will be announced within three months.Currently ten components for local assembly/manufacturing of Trailers can be imported at concessionary rate of 5% Customs duty. On the recommendation of EDB Eleven (11) more components are being included in view of diversified requirement of trailers for upcoming CPEC projects.

that's a very lame excuse, affording to buy a vehicle yet not affording a tax consultant to file taxes is pretty ironic.

here's the first class on taxes 101Paying taxes listed on your utility bills and retail purchases doesn't make you a tax payer, these are indirect taxes which are implemented where majority is not a tax filer,

if majority of people who are wealthy enough stop playing the victim and become tax filers they can help decrease the rate of indirect taxes in general and provide relief to those unfortunate people who REALLY don't afford to pay taxes over their purchases.